WOCCU Chair attends first Federation of Romania Credit Unions AGM

July 18, 2005

Phone: (608) 395-2000

A group photo at the new Romanian Federation of Credit Unions 1st AGM

Madison, WI-World Council of Credit Union's,
Inc.
(WOCCU) board chair L.R. (Bobby) McVeigh attended
the first AGM of the Federation of Romania Credit
Unions last week, at which he gave a presentation
on evolvement of the Romanian credit union
system. After congratulating the attendees on
the advent the auspicious event, McVeigh noted
the precarious situation of the Romanian credit
union system in the previous year.

"As you look back to a little over a year ago,
it
was questionable whether the credit union system
in Romania could survive because the existing
national federation (UNCAR) had no intention of
adhering to international accounting or financial
standards. Following a meeting of several local
credit unions with myself and Mr. Bierecki, just
over a year ago, seven credit unions took
the 'leap of faith' and formed the new
Federation. It is a distinct pleasure for me to
be here today and to extend my sincere
congratulations on behalf of World Council of
Credit Unions on a job well done. Today, nine
members of the Association are adhering to
international financial standards, are regulated
and supervised by the Federation, and continue to
grow and thrive."

There are over 2000 CARs (credit union
organizations) in Romania, but most do not have
effective supervision, transparency in operations
or quality decision-making. The number of CARs
to able to survive even the next two years is
questionable. In contrast Federation of Romania
Credit Unions, and its members should continue to
thrive and grow because of the good governance
practices, transparency, financial standards and
supervision made possible by training from World
Council in conjunction with the Polish credit
union system. The Polish system is not only
talking of principles and philosophy of 'people
helping people,'" said McVeigh, "they
are 'walking the talk' and are setting an example
that I only hope will be emulated by other
systems around the world."

Earlier the same week, McVeigh and the CEO of
met with the first vice deputy general of
the National Bank of Romania, Florin Georgescu.
McVeigh noted, "He is most supportive of looking
at the regulations to assist in the development
of credit unions; secondly, he has agreed with
the monitoring and supervision principles and
establishing financial standards. He has
consented to work with the federation and is
awaiting a proposal of what we suggest the
government undertake to assist in the development
of credit unions." He further noted, "This has
been one of the most successful meetings that I
have had the pleasure of participating in here in
Romania in the last six years. This is very good
news and we will continue to build on this
success."

"There is no question of the need for a sound,
safe credit union system in Romania. The people
need it, the small world communities need it, the
urban centres need it and the country needs it.
Banks are still leaving a large segment of the
population unfinanced and they have no desire to
deal with middle and lower income families. Loan
sharks and payday lenders continue to thrive.
Romanians need a safe, sound, credit union
system. Like the Polish, I challenge you to pick
the 'best of breed' when it comes to providing
new and innovative services on a cost-effective
basis to your membership. You do not have to
reinvent the wheel. Tap into the members who
belong to World Council whether it is Poland,
Canada, or other countries and don't be afraid to
ask for assistance."

In his presentation, McVeigh issued six
challenges to Federation of Romania Credit
Unions for the following year:

1. Practice transparency in operations and
governance.
2. Establish your 'brand' to separate you
from the many unsupervised, unregulated credit
unions that will eventually collapse.
3. Adhere to financial standards – no
compromise. Don't add credit union members to
your federation for growth alone; continue to
ensure that they meet your financial standards
and your governance standards.
4. Communicate – continue to communicate to
the public and the government the credit union
difference and that your members are regulated,
supervised and practice international financial
standards and transparency.
5. Work for legislative and regulatory
change that will enable you to enhance the
service to members and provide opportunity for
all Romanians to belong a safe, sound credit
union system.
6. Continue to develop and foster
relationship with Poland and other successful
credit union movements. Learn from the 'best of
breed' business decisions, advertising, lobbying,
etc.

McVeigh closed by commemorating Federation of
Romania Credit Unions first anniversary with a
gift from World Council.

World Council of Credit Unions is the global trade association and development agency for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.

World Council has implemented 300+ technical assistance programs in 89 countries. Worldwide, 68,882 credit unions in 109 countries serve 235 million people. Learn more about World Council's impact around the world at www.woccu.org.